Wolf of Xiangjiang

Time flies, and five months have passed in the blink of an eye.

Monday, August 2007, 9.

The Hang Seng Index broke through 30000 points, and the total market value of the Hong Kong stock market reached 22.5 trillion Hong Kong dollars. However, due to the surge in the mainland stock market, the Hong Kong stock market fell from the sixth to the seventh in the world in terms of market value.

In the past 10 months, Taifook and Hengfeng Group have frequently sold off their property assets. Although this has attracted global attention, the impact has not been widespread.

Blackstone Group also successfully obtained a $31 billion investment from Middle Eastern investors, which enabled it to go public in June, with a market value of up to $6 billion. At the same time, Blackstone Group also acquired EOP, the largest real estate company in the United States, and is preparing to split it up for sale.

Although there were signs of the subprime mortgage crisis at this time, the global economy had entered its final frenzy stage and the stock market was booming.

Lin Zhengjie came to the headquarters of the "Lin Zhengjie Family Office" in the Hengfeng Group Center. This "wealth-bringing" building is the headquarters office building of Lin Zhengjie's three major financial service institutions: "Hengfeng Financial Group", "HarbourVest Investments" and "Lin Zhengjie Family Office".

The Taifook Group Center is the headquarters building of the Taifook Group, which includes Taifook Group, Wheelock Holdings and Taifook Infrastructure Group.

The two skyscrapers, facing each other in Central, symbolize the dominant position of the Lam family in Hong Kong's business.

Of course, Lin Zhengjie has more than just these property assets. Taifook Group also owns two huge property complexes, 'Tyfook Plaza' and 'International Financial Center'.

These four properties alone make up a Central property portfolio of over 10 million square feet, and there are naturally many more.

"Mr. Lin"

"dad"

The top executives of Lin Zhengjie's family office were already sitting in the conference room waiting, including President Tony Kroos, Investment President Brian, Head of Administration Zheng Binghai (brother-in-law), and two vice-chairmen of the "Board of Directors", Lin Wendong and Lin Wenyi.

"Sit down, we are all family!"

Then, everyone sat down.

Lin Zhengjie was in a good mood looking at these close people, including Toni Kroos and Bryan, who were both veterans who had served him for 18 years. However, in another five years, these two people would almost retire and enjoy life, and their successors would be foreign personnel promoted from within and absolutely loyal.

Lin Zhengjie didn't trust foreign personnel very much before, but after more than ten years of getting along with them, he found that the turnover rate of foreign senior executives was also zero, of course, excluding special reasons, at least there was no talk of job-hopping. So, he also let go of his grudges and allowed Chinese and foreign talents to earn a living based on their real abilities.

"Have you calculated the market value of global stocks held by the family office?"

Brian immediately said: "The market value of the securities held by the family office is 622 billion US dollars, of which the market value of holdings in the US stock market alone is 455 billion US dollars, and Hong Kong is the second largest region with 98 billion US dollars."

The current total market value of the United States is 15 trillion US dollars, and Lin Zhengjie's family office holds equivalent to % of the market value.

Over the years, Lin Zhengjie's family office has been investing in the U.S. stock market, and later made long-term investments in almost all companies that Lin Zhengjie believed had potential.

It is conceivable that as a person in the previous life, he is too familiar with the high-market-cap companies in the United States, so the investments are very ideal.

Not to mention, Lin Zhengjie also arranged to sell high and buy low before the bubble crisis.

Of course, Lin Zhengjie's family office holds not only securities (in major global securities markets such as the United States, Hong Kong, Japan, and the United Kingdom), but also has invested in 500 tons of gold (worth US$120 billion) and real estate worth approximately US$30 billion.

This means that the family office’s assets are now worth as much as US$770 billion.

As for how much money Lin Zhengjie injected, it was about 18 billion US dollars, which is equivalent to a thirty-fold increase, which is quite exaggerated. Because some funds were injected later, the annual rate of return is probably more than 25%.

During Buffett's time, Berkshire Hathaway's return was 20% with leverage, but only 11% without leverage.

Therefore, the return on investment of Lin Zhengjie's family office is far higher than that of Berkshire Hathaway, and he has never used leverage.

The initial funds used to purchase gold were as high as 50 billion US dollars (around 2000-2001), and this 50 billion US dollars was actually cashed out from Internet stocks.

Lin Zhengjie said seriously: "In the next four and a half months, we will reduce our global stock market positions by 4%. You should formulate a strategy immediately and immediately implement the average cash-out mode."

The last four months of this year, plus half a month in January next year, are the time to cash out.

Of course, Lin Zhengjie also knows that there may be a big drop in January next year; but it doesn’t matter. This kind of step-by-step cashing out will itself be higher than the expected cashing out funds, because the stock market is still growing, or even rising sharply.

"clear"

They are all veterans, and they experienced the current situation in late 1999 and early 2000.

Moreover, in the past ten months, this tycoon has indeed been cashing out other assets, which seems to indicate that he has made some predictions.

Although the subprime mortgage crisis had already emerged at this time, no one realized the seriousness of the problem.

Lin Zhengjie then said to Lin Wendong and Lin Wenyi: "You two brothers, take charge of this time and follow your uncles to learn the things in the family office."

Not only do you have to do business well, you also have to devote your energy to family office affairs!
Isn't that how he got here?

Lin Wendong and Lin Wenyi nodded quickly and replied, "Okay, father."

Lin Wenyi was a little excited inside. After all, this was the moment when he felt the most valued.

Although he knew very well that his eldest brother's position as the eldest son was not something he could shake, and that his eldest brother was also the well-deserved "young clan leader", he also understood one thing, that is, given his father's health, they, as sons, might not live longer than his father, so "helping the family more and sharing more of his father's worries" was their goal.

As for Lin Wendong, he feels that everything is his responsibility and has naturally learned to be more steady, although there is some pressure.

After the family office meeting, Lin Zhengjie came to the office of Horizons Ventures and took out the asset information of Horizons Ventures.

The U.S. securities held by Horizons Ventures are only 320% of the total market value, or US$110 million; at the same time, they also hold Hong Kong stocks with a market value of US$ billion.

The rest of the countries have no investment, so the total market value of securities is 430 billion US dollars.

By this calculation, the total market value of Lin Zhengjie's holdings in the Hong Kong stock market is less than 220 billion US dollars. This market value is probably not even comparable to the 2000 billion market value held by Li Ka-shing in his previous life.

Of course, the first reason is that Lin Zhengjie and other lovers are also speculating in Hong Kong stocks, and their total investment is about 100 billion. The second reason is that the Hong Kong stock market still has a lot of room for growth, and it is expected to rise to 40000 points in the last four months, which means it will increase by another 30%.

Because the Hong Kong stock market had just started to go crazy at this time, and the real show had not yet begun.

In addition to 330 billion in securities, Horizons Ventures also owns 500 tons of gold and some properties, with a total value of approximately US$480 billion.

The hidden wealth of the Lin Zhengjie family, including the family office and Victory Ventures alone, reached US$1250 billion, or HK$ trillion.

Crazy!

Of course, this is only the current book wealth. For example, in his previous life, the wealth of Li Ka-shing's private investment company once reached 2000 billion Hong Kong dollars, or 250 billion US dollars, and he was called the "Asian stock god". However, he did not escape the financial crisis and immediately returned to his original form, jokingly calling himself a "fake stock god".

Soon, Lin Zhengjie convened a meeting of the top executives of Horizon Ventures, including Vice President Li Rongsen, head of the North American investment department Zhou Weihai, and head of the Asian investment department He Wenshi, all of whom were Chinese.

In family offices, foreigners account for half of the total; but in Horizons Ventures, foreigners only account for 20%, and are basically concentrated in the North American investment department.

"I plan to cash out 40% of my securities investment over a five-month period, ending in January next year. Please arrange a cash-out plan that averages out on a daily basis." Li Rongsen said without hesitation, "Well, we will ensure safety, concealment and asset security."

No one would question the boss's decision. The closer people are to Lin Zhengjie, the more they can discover Lin Zhengjie's behavior and the more they believe in the direction of things.

Next, Zhou Weihai asked, "Boss, do you want to withdraw the cash from North America back to Hong Kong?"

For example, the Lin Zhengjie Family Office has formulated a strategy of "five major locations" and "five major fund storage locations" in Hong Kong, Singapore, New York, London and Zurich. Of course, Hong Kong accounts for half of the share at 40% and Zurich accounts for 20%. This is just an arrangement for idle funds.

The nature of Horizons Ventures is different. It is essentially "Lin Zhengjie's personal enterprise". Even his family members have not shared it. Even his legitimate wife, Guan Jiahui, does not know how much money is in it.

Of course, Horizons Ventures has a healthy system, with legal advisors and trust executors. Once something happens to Lin Zhengjie, it will immediately become a trust fund, supervised by Hengfeng Financial Group, and the existing management will continue to manage it, and the beneficiaries will be family members.

Lin Zhengjie said: "Half of the funds in North America will be withdrawn to Hong Kong first, and then they may be used to purchase physical assets."

"Ok"

Half of it can be kept for bargain hunting securities, and you can buy it back at will.

Half of the funds are for flexible investment, and a larger amount is used to purchase physical assets.

This time, whether it is the family office or Horizons Ventures, even if they buy back the securities they sold, there will still be a lot of money left. How to invest this money may become cash flow, or it may be invested in real estate, mining, or even in emerging markets, but it must be directed by Lin Zhengjie.

In terms of cash flow, in 2006, Lin Zhengjie received dividends of HK$110 billion from Taifook, and in 2007 (this year), the dividends temporarily reached HK$80 billion.

Lin Zhengjie was not stingy with the money and donated it all to the "Lin Zhengjie Foundation" for charity.

Before 2005, Lin Zhengjie's annual dividends were also quite high, but part of the money was invested in the family office and Victoria Harbour, and the other part was invested in the "Lin Zhengjie Foundation".

But now, Lin Zhengjie feels that he needs to spend more energy and money on charity, he wants people to live a more meaningful life!
Finally, Lin Zhengjie reminded: "By the way, the red chip stocks we invested in need to be publicly announced for cashing out, so we will cash out in mid-October."

In recent years, a large number of mainland enterprises have listed in Hong Kong. As the boss of a local chaebol, Lin Zhengjie naturally got some "original shares". However, the cashing out of these original shares is generally required to be public.

Once it is made public, the media will definitely find out, so let’s cash out for a month and a half first.

Li Rongsen nodded and said, "I understand!"

The next day, Lin Zhengjie continued to arrange cash-out activities in the financial market and came to Hengjin Investment Development.

Hengjin Investment Development, affiliated to Hengfeng Financial Group, is one of the three major assets of Hengfeng Financial Group. The other two assets are Hengfeng Bank and Bank of Bahrain.

At present, the three major assets have been reorganized, and Barings Bank has been separated from Hengjin Investment Development and directly belonged to Hengfeng Financial Group. In this way, Hengfeng Financial Group has actually formed three major structures: commercial bank, investment bank, and investment enterprise.

Of course, in reality, the commercial bank Hengfeng Bank also has an investment department.

As usual, he first reviewed the assets of Hengjin Investment.

Hengjin Investment has been investing in higher-risk projects, including index futures, oil futures, gold futures, etc. In addition, it has also stored 200 tons of gold and some fixed assets.

After settlement, there is almost 200 billion US dollars, and a cash flow of about billion US dollars, deposited in Hengfeng Bank.

Except for the initial injection, the rest of the money he earned was basically his own. Of course, this included the dividends from Hengfeng Bank and the cash that originally belonged to Hengfeng Financial Group, which was also directly transferred to Hengjin Investment Development.

Here, Hengfeng Financial Group is actually a management organization, and its three major businesses are operating enterprises.

On the other hand, Hengjin Investment Development is almost the same as Victoria Harbour Investments, and is Lin Zhengjie's slush fund and private investment company.

Of course, this year, Lin Qingxia's eldest son Lin Wenyue joined Hengfeng Financial Group, symbolizing that the situation of "many sons competing for Hengfeng" has begun. Sons from several families are preparing to study finance and join Hengfeng Financial Group.

Not to mention competing for the actual equity of Hengfeng Financial Group, which doesn't seem likely, Lin Zhengjie clearly told each family that Hengfeng Financial Group will eventually be a trust asset, and the beneficiaries will be all family members.

However, Hengfeng Financial Group is a career platform for the second generation of the Lin family, because this company is large enough and its business covers the world. If you want to learn more skills and realize your financial dream, it is of course best to join Hengfeng Financial.

Lin Zhengjie also publicly said that although Hengfeng Financial Group will most likely adopt a "professional manager" model in the future, anyone with good abilities can definitely join the senior management and even secure the position of president.

Everything depends on your own ability!
At present, the entire Hengfeng Financial Group has a total asset value of more than 500 billion US dollars. Even the Barings Bank has a total asset value of billion US dollars.

After a while, Lin Zhengjie and a group of management also started watching the meeting.

Hengjin Investment has a wide range of business operations, covering Europe, America and Asia, with four major investment departments in Hong Kong, Singapore, London and New York.

"boss"

"Sit down, it's rare for everyone to get together!"

Everyone laughed. Although the boss seemed to meet with everyone only a few times a year, everyone still felt that the boss was always influencing every investment.

"Today, I am holding this meeting to say that, with the exception of oil futures, all investments must be closed by the end of December, preferably by the end of October, depending on the circumstances."

Futures have a delivery date, but of course positions can be closed on non-delivery dates, provided there is a counterparty.

Qiao Baisen said: "Then can we go short in the futures index at the end of October or the end of December?"

You can make money when the price goes up or down, that’s how risky investing works!
Lin Zhengjie said: "Yes, but you have to start shorting next year's contracts from December and focus on the whole year of 12. This accident is caused by the possibility of a global financial crisis caused by the US subprime mortgage crisis. It is expected that it will gradually spread in early 2008."

As for the stock index, what he said is only for reference and it may fall back by the end of October.

But what is certain is that next year will be a disaster year.

When Hengjin Investment does futures trading, it will have both losses and gains if calculated based on the delivery month; but it is possible that out of the eight delivery months, there are only two or three months with losses, while the rest are all gains.

After the final settlement, you will naturally make profit throughout the year.

"Okay, we got it!"

As for oil futures, Qiao Baisen understands the trend. His boss has analyzed it for him privately and is optimistic about US$90 per barrel this year, and may exceed US$140 per barrel in the first eight months of next year.

So follow this trend!

After the three financial institutions arranged the cashing out, Lin Zhengjie suddenly felt relieved.

As for the operating businesses, they started cashing out ten months ago, including Taifook Group, Wheelock Group, Bank of Bahrain (which can be considered as an investment in real estate), and even Hengfeng Bank, which started reducing non-performing loans a year ago and cashed out some of their property assets at the beginning of the year.

The same is true for Korea First Bank!

Beautiful!

Lin Zhengjie has already experienced what Li Jiacheng felt after he retired in his previous life. He saw many other people go bankrupt, but his own company had sufficient cash flow. (End of this chapter)